CHENNAI: Chasing the cash trail of sand mining baron J Shekhar Reddy, who has been arrested by the CBI after the seizure of new currency notes of Rs 34 crore from his premises, the Enforcement Directorate here has arrested two money launderers and seized Rs 10 crore worth old currencies and 6.5 kg gold.
Joint Director of Enforcement Directorate K S V V Prasad said Mahavir Hirani and Ashok Jain were involved in exchange of old notes for new ones of about Rs 6 crore to Reddy. Investigations revealed that the duo had links with Kolkata-based businessman Parasmal Lodha, who was arrested for converting Rs 25-crore demonetised notes into new currency.
“Their link to Reddy was corroborated through Lodha, and both Mahavir and Ashok helped Reddy obtain Rs 6-7 crore new currency in exchange of Rs 10 crore demonetised cash,” said Rao.
He said the search at the premises of Ashok Jain resulted in seizure of Rs 10 crore of old currencies and 6.5-kg gold. Further verification revealed that Mahavir and Ashok were involved in exchange of old currencies for new currencies on commission basis.
The duo are arrested under the Prevention of Money Laundering Act and are remanded in judicial custody till January 11.
Vivek fails to turn up
With the former Chief Secretary P Rama Mohana Rao’s son Vivek Pappisetti failing to turn up despite summons, Income Tax (I-T) officials are exploring alternatives, sources said. Vivek, whose house at Tiruvanmiyur was raided along with that of his father’s on December 21, was summoned by I-T Department to appear on Friday last at the Director-General of Income Tax (Investigation) office. In fact, Rao, too, had volunteered to come to the department that date, said sources. “But we told him that his presence is not required. We are poring through the documents seized. We will summon him as and when required,” official sources told Express.
Vivek expressed his inability to report on Friday, stating that he was attending to his pregnant wife. “He assured that he will report to the office on Saturday,” said the official. “We waited for him on Saturday and messaged him. He said he will come on Monday,” said the official.
“Now for the last two days, he is ignoring our messages and not picking up calls,” the official added.